Taiwan-based manufacturer Hon Hai -- better known under its lead brand Foxconn -- posted a 19 percent fall in sales year-over-year during the first quarter, Reuters reports. Revenue reached T$808.97 billion, a decline from T$1 trillion in Q1 2012, as well as the T$988.34 billion the company posted in Q4. The drop is being blamed on lower demand for the iPhone.

"A quarterly decline was expected, but not a yearly decline," comments KGI Securities' Ming-chi Kuo. "This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected." The analyst is predicting that Hon Hai sales will stay flat quarter-over-quarter in Q2.

Hon Hai is estimated to generate about 60 to 70 percent of all its revenue from Apple contracts, mainly assembling iPhones and iPads. The slip in iPhone demand may be based on a combination of factors. Aside from an expected post-holiday slump, Apple is facing more intense competition from Android phones like the Samsung Galaxy S III, and some critics have complained that the iPhone 5 is little different from the iPhone 4S, beyond major cosmetic changes.